Home
 
News Archive
PriceWatch
Job Offers
Columns
Photo Reports
Sponsored Links
World Retailers
 
Dutch Traders
Introductions
 
Free Subscription
 
Who we are
What we do
Advertise here
Contact us

eXTReMe Tracker

 

Philippines: RP economy up 5.4% in 2006, within forecasts

The Philippine economy rose 5.4 percent in 2006 from 2005, in line with estimates, due to sustained growth in services which offset a weaker farm output, the government said on Wednesday. In the fourth quarter of 2006, the Philippines’ gross domestic product (GDP) grew 4.8 percent from the same period a year earlier.

The full-year GDP growth fell in line economists’ and government’s estimates. "All in all, it's not too bad. I suppose the external factor, including exports, did reasonably well. Remittances also sustained growth," said CIMB-GK Research regional economist Song Seng Wun who is based in Singapore.

The government had earlier revised the 2006 GDP target to 5.3-5.6 percent from the original 5.5-6.1 percent goal. Economists polled by ABS-CBN had expected growth between 5.0 and 5.5 percent. On a seasonally-adjusted basis, the economy grew 0.8 percent in the fourth quarter from the third quarter.

MARKETS CHEER

Financial markets cheered the announcement of the economic data, with both the peso and local stocks opening higher on Wednesday. As of 9:40 am, the Philippine Stock Exchange composite index was up 12.62 points at 3,209.28.

The peso was quoted at 48.875 to the dollar, firmer than Tuesday's close of 48.955. "For 2007, I am looking at a growth of 5-5.5 percent, weather
permitting and also the U.S. economy. The Philippines is going
into an election year, so I expect pump-priming of the economy," Song said.

"The healthier fiscal position of the government will allow (President) Arroyo some leeway to spend more on infrastructure and other projects that would enhance the chance of her candidates during the election," he said. According to the National Statistical Coordination Board (NSCB), the services sector led the expansion in 2006, growing 6.3 percent year-on-year.

Agricultural output, which accounts for one-fifth of GDP, grew 4.1 percent. Industrial production rose 4.8 percent, while the manufacturing sector went up 5.4 percent.